U.S. Department of State
Background Notes: Greece, October 1996
Bureau of Public Affairs

Official Name: Hellenic Republic

PROFILE

Geography

Area: 131,957 square km. (51,146 square miles), roughly the size of 
Alabama.
Major cities: Greater Athens (pop. 3,096,775), municipality of  Athens 
(748,110), Thessaloniki (377,951), Piraeus (169,622), Greater Piraeus 
(880,529), Patras (172,763), Larissa (113,426), Iraklion (117,167).
Terrain: Mountainous interior with coastal plains; many islands.
Climate: Mediterranean; mild winter and hot, dry summer.

People

Population: 11.5 million.
Growth rate: 0.4%.
Languages: Greek 99%, other 1%.
Religions: Greek Orthodox 98%, Muslim 1%, other 1%.
Education: Years compulsory--nine. Literacy--93%. All levels are free. 
Health: Infant mortality rate--
8/1,000. Life expectancy--male 74 years, female 79 years.
Work force: 4.85 million.

Government

Type: Presidential parliamentary republic.
Independence: 1830.
Constitution: June 11, 1975, amended March 1986.
Branches: Executive--president (head of state), prime minister (head of 
government). Legislative--300-seat unicameral Vouli (parliament). 
Judicial--Supreme Court.
Political parties: Panhellenic Socialist Movement (PASOK), New Democracy 
(ND), Political Spring, Communist Party of Greece (KKE), Coalition of 
the Left (SYNASPISMOS).
Suffrage: Universal at 18.
Administrative subdivisions: 13 peripheries (regional districts), 51 
nomi (prefectures).

Economy (1995)

GDP: $108 billion.
Per capita GDP: $9,400.
Growth rate: 1.5%.
Inflation rate: 9%.
Unemployment rate: 10.5%.
Natural resources: Bauxite, lignite, magnesite, oil, marble.
Agriculture (11% of GDP): Sugar, beets, wheat, maize, tomatoes, olives, 
olive oil, grapes, raisins, wine, oranges, peaches, tobacco, cotton, 
livestock, dairy products.
Industry and construction (24% of GDP): Processed foods, shoes, 
textiles, metals, chemicals, electrical equipment, cement, glass, 
transport equipment, petroleum products, construction, electrical power.
Services (65% of GDP): Transportation, communications, trade, banking, 
public administration, defense.
Trade: Exports--$5.5 billion: manufactured goods, food and beverages, 
petroleum products, cement, chemicals. Major markets--Germany, Italy, 
France, U.S., U.K. Imports--$18.7 billion: basic manufactures, food and 
animals, crude oil, chemicals, machinery, transport equipment. Major 
suppliers--Germany, Italy, France, Japan, Netherlands, U.S.
Exchange rate (January 1996): 240 drachmas=U.S.$1.

U.S.-GREEK RELATIONS

The U.S. and Greece have long-standing historical, political, and 
cultural ties based on a common heritage, shared democratic values, and 
participation as Allies during World War II, the Korean conflict, and 
the Cold War. The U.S. is the largest foreign investor in Greece; U.S. 
foreign investment in Greece was about $900 million in 1994.

According to the 1990 U.S. census, 1.1 million Americans are of Greek 
origin. The large, well-organized Greek-American community in the U.S. 
cultivates close political and cultural ties with Greece. Greece has the 
seventh-largest population of U.S. social security beneficiaries in the 
world.

During the Greek civil war of 1946-49, the U.S. proclaimed the Truman 
Doctrine, promising assistance to governments resisting communist 
subjugation, and began a period of substantial financial and military 
aid. The U.S. has provided Greece with more than $11.1 billion in 
economic and security assistance since 1946. Economic programs were 
phased out by 1962, but military assistance has continued. In fiscal 
year 1995, Greece was the fourth-largest recipient of U.S. security 
assistance, receiving loans totaling $255.15 million in foreign military 
financing. 

In 1953, the first defense cooperation agreement between Greece and the 
United States was signed, providing for the establishment and operations 
of American military installations on Greek territory. The current 
mutual defense cooperation agreement (MDCA) provides for continuing U.S. 
military assistance to Greece and the operation by the U.S. of a major 
military facility at Souda Bay, Crete.

Principal U.S. Embassy Officials

Ambassador--Thomas Niles
Deputy Chief of Mission--Thomas Miller
Political Officer--Robert Becker
Economic Officer--Don Booth
Commercial Officer--Patrick Santillo
Consular Officer--Richard Laroche
Administrative Officer--Anita Booth
Regional Security Officer--Timothy Dixon
Agricultural Officer--Paul Hoffman
Public Affairs Officer (USIS)--Robert Callahan

The U.S. embassy in Greece is located at 91 Vasilissis Sophias Blvd., 
10160 Athens; tel: [30] (1) 721-2951 or 721-8401, after hours 722-3652; 
fax: [30] (1) 645-6282.

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HISTORICAL AND CULTURAL HIGHLIGHTS

Greece was inhabited as early as the Paleolithic period and by 3000 BC 
had become home, in the Cycladic Islands, to a culture whose art remains 
among the most evocative in world history. Early in the second 
millennium BC, the island of Crete nurtured the sophisticated maritime 
empire of the Minoans, whose trade reached from Egypt to Sicily. The 
Minoans were challenged and eventually supplanted by the Mycenaeans of 
the Greek mainland, who spoke a dialect of ancient Greek. Initially, 
Greece's mosaic of small city-states were ethnically similar. During the 
Roman, Byzantine, and Ottoman Empires (1st-19th centuries AD), Greece's 
ethnic composition became more diverse. Since independence in 1830 and 
an exchange of populations with Turkey in 1923, Greece has forged a 
national state which claims roots reaching back 3,000 years.

The Greek language dates back at least 3,500 years, and modern Greek 
preserves many elements of its classical predecessor. In the 19th 
century, after Greece's War of Independence, an effort was made to rid 
the language of Turkish and Arabic words and expressions. The resulting 
version was considered to be closer to the classical Greek language of 
Homer and was called Katharevousa. However, Katharevousa was never 
adopted by most Greeks in daily speech. The commonly spoken language, 
which was called Demotiki, became the official language for the country 
in 1976. 

Independent Greece

The Greek War of Independence from the Ottoman Empire began in 1821 and 
concluded with the winning of independence in 1830. With the support of 
England, France, and Russia, a monarchy was established. A Bavarian 
prince, Otto, was named king in 1833. He was deposed 30 years later, and 
the Great Powers chose a prince of the Danish House of Glucksberg as his 
successor. He became George I, King of the Hellenes.

The Megali Idea (Great Idea), a vision of uniting all Greeks of the 
declining Ottoman Empire within the newly independent Greek State, 
exerted strong influence on the early Greek state. At independence, 
Greece had an area of 47,515 square kilometers (18,346 square mi.), and 
its northern boundary extended from the Gulf of Volos to the Gulf of 
Arta. The Ionian Islands were added in 1864; Thessaly and part of Epirus 
in 1881; Macedonia, Crete, Epirus, and the Aegean Islands in 1913; 
Western Thrace in 1918, and the Dodecanese Islands in 1947.

Greece entered World War I in 1917 on the side of the Allies. After the 
war, Greece took part in the Allied occupation of Turkey, where many 
Greeks still lived. In 1921, the Greek army attacked from its base in 
Smyrna (now Izmir), and marched toward Ankara. The Greeks were defeated 
by Turkish forces led by Mustafa Kemal (later Ataturk) and were forced 
to withdraw in the summer of 1922. Smyrna was sacked by the Turks, and 
more than 1.3 million Greek refugees from Turkey poured into Greece, 
creating enormous challenges for the Greek economy and society and 
effectively ending the Megali Idea.

Greek politics, particularly between the two World Wars, involved a 
struggle for power between monarchists and republicans. Greece was 
proclaimed a republic in 1924, but George II returned to the throne in 
1935, and a plebiscite in 1946 upheld the monarchy. It was finally 
abolished, however, by referendum on December 8, 1974, when more than 
two-thirds of the voters supported the establishment of a republic.

World War II and the Greek Civil War

Greece's entry into World War II was precipitated by the Italian 
invasion on October 28, 1940. That date is celebrated in Greece by the 
one-word reply--ochi ("no")--given by the Greek Prime Minister to the 
surrender demand made by Mussolini. Despite Italian superiority in 
numbers and  equipment, determined Greek defenders drove the invaders 
back into Albania. Hitler was forced to divert German troops to protect 
his southern flank and attacked Greece in early April 1941. By the end 
of May, the Germans had overrun most of the country, although Greek 
resistance was never entirely suppressed. German forces withdrew in 
October 1944, and the government in exile returned to Athens.

After the German withdrawal, the principal Greek resistance movement, 
which was controlled by the communists, refused to disarm. A banned 
demonstration by resistance forces in Athens in December 1944 ended in 
violence and was followed by an intense, house-to-house battle with 
Greek Government and British forces. After three weeks, the communists 
were defeated and an unstable coalition government was formed. 
Continuing tensions led to the dissolution of that government and the 
outbreak of full-fledged civil war in 1946. First the United Kingdom and 
later the U.S. gave extensive military and economic aid to the Greek 
Government. Communist successes in 1947-48 enabled them to move freely 
over much of mainland Greece, but with extensive reorganization and 
American material support, the Greek National Army under Marshal Papagos 
was slowly able to regain control over most of the countryside. 
Yugoslavia closed its borders to the insurgent forces in 1949, after 
Marshal Tito of Yugoslavia broke with Stalin and the Soviet Union. 

In August 1949, the National Army launched a final offensive that forced 
the remaining insurgents either to surrender or flee across the northern 
border into the territory of Greece's communist neighbors. The 
insurgency cost Greece 100,000 killed and catastrophic economic 
disruption. In addition, at least 25,000 Greeks were either voluntarily 
or forcibly evacuated to Eastern bloc countries, while 700,000 became 
displaced persons inside the country.

At the end of the Greek civil war, the country was a monarchy with a 
parliamentary system; the monarchy was abolished in 1974. From 1949 to 
1996, Greece has seen a succession of coalition, military, and 
republican governments (see also Government and Political Conditions).
=======================================

ECONOMY

The Greek economy is slowly coming out of a slump caused by a drop in 
investment and the implementation of stabilization policies in recent 
years. Greece remains a net importer of industrial and capital goods, 
foodstuffs, and petroleum. Leading exports are manufactured goods, food 
and beverages, petroleum products, cement, chemicals, and 
pharmaceuticals. 

Recent Economic History

The development of the modern Greek economy began in the late 19th and 
early 20th centuries with the adoption of social and industrial 
legislation and protective tariffs and the creation of the first 
industrial enterprises. Industry at the turn of the century consisted 
primarily of food processing, shipbuilding, and the manufacture of 
textiles and simple consumer products. Greece achieved high rates of 
growth in the late 1960s and early 1970s, due to large foreign 
investments.

In the mid-1970s, Greece suffered declines in its GDP growth rate, ratio 
of investment to GDP, and productivity, and real labor costs and oil 
prices rose. In 1981, protective barriers were removed when Greece 
joined the European Community. The government pursued expansionary 
policies, which fueled inflation and caused balance of payments 
difficulties. Growing public sector deficits were financed by borrowing. 
In October 1985, supported by a 1.7 billion European currency unit (ecu) 
loan from the European Union (EU), the government implemented a two-year 
"stabilization" program with limited success. Public sector inefficiency 
and excessive spending caused government borrowing to increase; by the 
end of 1992, general government debt exceeded 100% of GDP.

Greece continued to rely on foreign borrowing to finance its deficits. 
Public sector external debt was $26.9 billion at the end of 1993. The 
general government debt was $129 billion at the end of 1995, or 120% of 
GDP. Greece's external debt was $32.7 billion at the end of 1994.

Greece, as a member of the EU, is currently striving to reduce its 
budget deficit and inflation rate in order to meet the prerequisites for 
European monetary union. Although growth remained above the convergence 
program guidelines for 1994-95, high budget deficits and deficient 
infrastructure continue to dampen the economy's long-term potential 
growth rate.

In May 1994, the Bank of Greece successfully managed a currency crisis 
triggered by the lifting of currency restrictions on short-term capital 
movements. The Bank contained speculative attacks on the drachma by 
tightening its monetary policy and raising interest rates dramatically: 
for a few days, interest rates pushed as high as 180%. In less than two 
months, with speculation on the drachma no longer a threat, interest 
rates returned to normal levels.

One of the successes of recent Greek economic policy has been the 
reduction of inflation rates. For more than 20 years, inflation hovered 
in the double digits, but a combination of fiscal consolidation, wage 
restraint, and strong drachma policies resulted in lowered inflation. 
Inflation was close to 8.5% in February 1996. 

High interest rates are still a major problem, despite recent cuts in 
both treasury bill and bank rates for savings and loans. The 
government's strong drachma policy and Public Sector Borrowing 
Requirement (PSBR)  make the lowering of interest rates difficult.

Principal Sectors

Services, including tourism, make up the largest and fastest-growing 
sector of the Greek economy, accounting for about 65% of GDP.

Tourism is a major source of foreign exchange earnings. Although it is 
one of the country's most important industries, it has been slow to 
expand and suffers from poor infrastructure. With more than 10 million 
tourists visiting Greece in 1994, the tourist industry made record 
profits, but it has suffered recently due to the strong drachma. Revenue 
from tourism exceeded $3.3 billion in 1993 and $3.7 billion in 1994, but 
this number declined slightly in 1995. Greece benefited from problems in 
neighboring countries and an economic recovery in the European Union. 
U.S. tourists, numbering 257,000 in 1993, represented about 2.5% of 
total tourist arrivals. Although tourism from the U.S. increased in the 
last three years, it is still far behind the 1979 level of 600,000 
arrivals.

The industrial sector accounts for about 17% of GDP. The food industry 
is one of the most profitable and highest-growth areas of manufacturing 
with significant export potential. High-technology equipment, especially 
in telecommunications, is also a fast-growing sector. Other important 
areas include textiles, building materials, machinery, transport 
equipment, and electrical appliances.

Greece is traditionally a seafaring nation and built a successful 
shipping industry based on its geographic location and the 
entrepreneurial ability of its ship owners. The Greek flag fleet was 
2,151 ships and 30.2 million gross registered tons in 1995, third in the 
world.

Petroleum is Greece's largest single import, at a cost of $2 billion in 
1993. About 75% of imported crude is processed by the two state-owned 
refineries, Aspropyrgos and EKO. The remaining 25% is processed by the 
two privately owned refineries, Motoroil and Petrola, which are mainly 
export-oriented. The four Greek refineries, with a capacity of 357,000 
barrels per day, exported about $554 million of petroleum products in 
1993.

Construction activity (estimated at 7.5% of GDP) is expected to increase 
due to infrastructure projects partially financed by European Union 
structural funds. About $20 billion over the next few years will go to 
projects  to modernize and develop Greece's transportation network. The 
centerpiece of this effort will be the construction of a new 
international airport near Athens. In addition, the Athens subway system 
is being greatly expanded, and construction or expansion of roads, 
railway lines, and bridges is either underway or planned. Completion of 
the expanded subway system is not expected until 1998.

EU Membership

Greece must realign its economy as part of an extended transition to 
full EU membership that began in 1981. Greek businesses will have to 
adjust to competition from EU firms and the government may need to 
liberalize its economic and commercial regulations and practices. 
However, Greece has been granted waivers from certain aspects of the 
EU's 1992 single market program. For example, by the end of 1995, the 
Greek drachma was not yet included in the exchange rate mechanism. 

Historically, Greece has been a net beneficiary of the EU budget. Net 
payments to Greece increased from $1.4 billion in 1986 to $4.3 billion 
in 1994, representing 5% of GDP. Net inflows were estimated at about 
$4.5 billion in 1995. These funds contribute significantly to Greece's 
current accounts balance and reduce the state budget deficit.

Greece expects to receive additional substantial support from the EU 
through the Delors II package. In July 1994, the Greek government and 
the EU agreed on a final plan which provided Greece 16.6 billion ecu 
($20 billion) for the period 1994-1998: 14 billion ecu from the 
Community Support Framework; and 2.6 billion ecu from the Cohesion Fund. 
The Greek Government will provide additional funds of 7.1 billion ecu 
and the Greek private sector another 7.1 billion ecu. This total will 
finance major public works and economic development projects, upgrade 
competitiveness and human resources, improve living conditions, and 
address disparities between the poorer and the more developed regions of 
the country.

GOVERNMENT AND POLITICAL CONDITIONS

Government Structure

The Constitution. The 1975 constitution, which describes Greece as a 
"presidential parliamentary republic," includes extensive specific 
guarantees of civil liberties and vests the powers of the head of state 
in a president elected by parliament and advised by the Council of the 
Republic. However, the Greek governmental structure is similar to that 
found in many Western democracies and has been described as a compromise 
between the French and German models. The prime minister and cabinet 
play the central role in the political process, while the president 
performs some governmental functions in addition to ceremonial duties. 

Presidential Powers. The president is elected by parliament to a five-
year term and can be reelected once. The president has the power to 
declare war and to conclude agreements of peace, alliance, and regarding 
participation in international organizations; a three-fifths 
parliamentary majority is required to ratify such agreements or 
treaties. The president can also exercise certain emergency powers, 
which must be countersigned by the appropriate cabinet minister. Changes 
to the constitution in 1986 limited the president's political powers. As 
a result, the president may not dissolve parliament, dismiss the 
government, suspend certain articles of the constitution, or declare a 
state of siege. To call a referendum, he must obtain approval from 
parliament. 

Parliament. Parliamentary deputies are elected by secret ballot for a 
maximum of four years, but elections can be called earlier. Greece uses 
a complex reinforced proportional representation electoral system which 
discourages splinter parties and makes a parliamentary majority possible 
even if the leading party falls short of a majority of the popular vote. 
A party must receive 3% of the total national vote to qualify for 
parliamentary seats. 

Defense Forces. The Hellenic Armed Forces number some 442,500, of which 
about 340,000 serve in the Hellenic Army (130,000 active duty; 210,000 
reservists); 56,000 in the Hellenic Navy (19,000 active duty; 37,000 
reservists); and 45,000 in the Hellenic Air Force (24,000 active duty; 
21,000 reservists). All Greek males are required to serve at least 18 
months in the military.

Local Administration. Greece is divided into 51 prefectures 
(nomarchies), each headed by a prefect (nomarch), who is elected by 
direct popular vote. There are also thirteen regional administrative 
districts (peripheries), each including a number of prefectures and 
headed by a regional governor (periferiarch), appointed by the Minister 
of the Interior. Although municipalities and villages have elected 
officials, they do not have an adequate independent tax base and must 
depend on the central government for a large part of their financial 
needs. Consequently they are subject to numerous central government 
controls.

Education, the Church, and Media

Education. Under the Greek constitution, education is the responsibility 
of the state. Most Greeks attend public primary and secondary schools. 
There are a few private schools, which must meet the standard curriculum 
of and be supervised by the Ministry of Education. The Ministry of 
Education oversees and directs every aspect of the public education 
process at all levels, including hiring all teachers and professors and 
producing all required textbooks.

Greek education is free and compulsory for children between the ages of 
five and 15. English language study is compulsory from grade five 
through high school. University education, including books, is also 
free, contingent upon the student's ability to meet stiff entrance 
requirements. Recent statistics indicate progressively poorer results in 
the annual entrance examinations. Low salaries and status of teachers; 
lack of books, supplies, labs, and computers; frequent strikes; and 
continuing reliance on rote memorization methods, are all matters of 
concern for Greek educators. 

A high percentage of the student population seeks higher education: 
about 113,000 are registered at Greek universities; 15% of the 
population currently holds a university degree. Entrance to a university 
is determined by state-administered exams, the candidate's grade point 
average from high school, and his/her priority choices of major. About 
one in four candidates gain admission to Greek universities.

Since Greek law does not permit the operation of private universities in 
Greece, a large and growing number of students are pursuing higher 
education abroad. The Greek Government decides through an evaluation 
procedure whether to recognize degrees from specific foreign 
universities as qualifications for public sector hiring. Other students 
attend private, post-secondary educational institutions in Greece, which 
are not recognized by the Greek Government. 

The number of Greek students studying at European institutions is 
increasing along with EU support for educational exchange. In addition, 
nearly 5,000 Greeks are studying in the United States, about half of 
whom are in graduate school. Greek per capita student representation in 
the U.S. is the highest of any European country.

The Greek Orthodox Church. The Church is under the protection of the 
state, which pays the clergy's salaries. Orthodox Christianity is the 
"prevailing" religion of Greece according to the constitution. The Greek 
Orthodox Church is self-governing but under the spiritual guidance of 
the Ecumenical Patriarch in Istanbul. During the centuries of Ottoman 
domination, the Church preserved Greek language, values, and national 
identity and was an important rallying point in the struggle for 
independence. 

The Muslim minority, concentrated in Thrace, was given legal status by 
provisions of the Treaty of Lausanne in 1923 and is Greece's only 
officially recognized minority. Other religious communities in Greece 
include Catholics, Jews, Old Calendar Orthodox, and Jehovah's Witnesses.

Media. The Greek media, collectively, is a very influential institution-
-usually aggressive, sensationalist, and frequently irresponsible with 
regard to content. Objectivity, as known to the U.S. media, on the whole 
does not exist. Most of the media are owned by businessmen with 
extensive commercial interests in other sectors of the economy. They use 
their newspapers, magazines, and radio and TV channels, to promote their 
commercial enterprises as well as to seek political influence. 

For international news, CNN is a particular influence in the Greek 
market; the major TV channels often use it as a source. State and 
private TV channels also use "Eurovision" and "Visnews" as sources. 
While few papers and stations have overseas correspondents, those few 
correspondents abroad can be very influential.

In 1988, a new law provided for the establishment of private radio 
stations and, as of 1989, private TV stations. According to the law, 
supervision of radio and television is exercised by the Council for 
Radio and Television. In practice, however, official licensing has not 
been implemented.

In 1994, the Ministry of Press and Information was established to deal 
with media and communication issues. ERT S.A.--a public corporation 
supervised by the Minister of Press--operates three national television 
channels and five national radio channels. The Minister of Press also 
serves as the primary government spokesman. The Secretary-General of 
Press and Information prepares the Athens News Agency (ANA) Bulletin, 
which is used, with AP and Reuters, as a primary source of information 
by the Greek press. The Ministry of Press and Information also issues 
the Macedonian News Agency (MPE) Bulletin, which is distributed 
throughout the Balkan region.

Because of the lack of an efficient licensing system, there has been a 
proliferation of private radio and TV stations, as well as European 
satellite channels, including Euronews; more than 1,000 radio stations 
are currently operating in Greece. The Greek Government is working on a 
proposal to reallocate TV frequencies and issue licenses.

The Greek press is dominated by the Athens newspapers and magazines, 
which are distributed nationally. Regional press is less significant, 
with the exception of the Thessaloniki papers. However, with the advent 
of private radio and television broadcasting, newspaper circulation 
figures have dropped dramatically. Most people listen to the radio in 
the morning, read newspapers in the afternoon, and watch the TV in the 
evening. From 1989-95, the total daily circulation figures of Athens 
newspapers dropped from 1,285,596 to under 500,000. Only three daily 
newspapers--Ta Nea, Eleftherotypia, and Eleftheros Typos--currently make 
a profit.

Political Conditions Since World War II

After the 1944-49 Greek civil war, Greece sought to join the Western 
democracies and became a member of NATO in 1952. From 1952 to late 1963, 
Greece was governed by conservative parties--the Greek Rally of Marshal 
Papagos and its successor, the National Radical Union (ERE) of 
Constantine Karamanlis. In 1963, the Center Union Party of George 
Papandreou was elected and governed until July 1965. It was followed by 
a succession of unstable coalition governments.

On April 21, 1967, just before scheduled elections, a group of colonels 
led by Col. George Papadopoulos seized power in a coup d'etat. Civil 
liberties were suppressed, special military courts were established, and 
political parties were dissolved. Several thousand political opponents 
were imprisoned or exiled to remote Greek islands. In November 1973, 
following an uprising of students at the Athens Polytechnic University, 
Gen. Dimitrios Ioannides replaced Papadopoulos and tried to continue the 
dictatorship.

Gen. Ioannides' attempt in July 1974 to overthrow Archbishop Makarios, 
the President of Cyprus, brought Greece to the brink of war with Turkey, 
which invaded Cyprus and occupied part of the island. Senior Greek 
military officers then withdrew their support from the junta, which 
toppled. Leading citizens persuaded Karamanlis to return from exile in 
France to establish a government of national unity until elections could 
be held. Karamanlis' newly organized party, New Democracy (ND), won 
elections held in November 1974, and he became Prime Minister.

Following the 1974 referendum which resulted in the rejection of the 
monarchy, a new constitution was approved by parliament on June 19, 
1975, and parliament elected Constantine Tsatsos as President of the 
republic. In the parliamentary elections of 1977, New Democracy again 
won a majority of seats. In May 1980, Prime Minister Karamanlis was 
elected to succeed Tsatsos as President. George Rallis was then chosen 
party leader and succeeded Karamanlis as Prime Minister.

On January 1, 1981, Greece became the 10th member of the European 
Community (now the European Union). In parliamentary elections held on 
October 18, 1981, Greece elected its first socialist government when the 
Panhellenic Socialist Movement (PASOK), led by Andreas Papandreou, won 
172 of 300 seats. On March 29, 1985, after Prime Minister Papandreou 
declined to support President Karamanlis for a second term, Supreme 
Court Justice Christos Sartzetakis was elected President by the Greek 
parliament.

Greece had two rounds of parliamentary elections in 1989; both produced 
weak coalition governments with limited mandates. Party leaders withdrew 
their support in February 1990, and elections were held on April 8. ND 
won 150 seats in the April 1990 election and subsequently gained two 
others. After Mitsotakis fired his first Foreign Minister--Adonis 
Samaras--in 1992, Samaras formed his own political party, Political 
Spring. A split between Mitsotakis and Samaras led to the collapse of 
the ND government and new elections in September 1993.

In October 1993, Papandreou was reelected Prime Minister when PASOK won 
170 seats. After his election, Prime Minister Papandreou focused on 
improving Greece's relations with its northern neighbors. The PASOK 
government also reversed two major privatization projects undertaken by 
Mitsotakis involving the national telephone system and the Athens bus 
system. 

On January 17, 1996, following a protracted illness, Prime Minister 
Papandreou resigned and was replaced as Prime Minister by former 
Minister of Industry Constantine Simitis.

In elections held in September 1996, Constantine Simitis was elected 
Prime Minister.

Principal Government Officials

President-Konstandinos Stephanopoulos
Prime Minister--Constantine Simitis
Foreign Minister--Theodhoros Pangalos
Ambassador to the U.S.--Loukas Tsilas
Ambassador to the UN--Khristos Zakharakis

Greece's embassy in the U.S. is located at 2221 Massachusetts Ave., NW, 
Washington, DC  20008; tel: (202) 939-5800; fax: (202) 939-5824.

FOREIGN RELATIONS

Geography

Greece is located in southeastern Europe on the southern tip of the 
Balkan Peninsula. The Greek mainland is bounded on the north by 
Bulgaria, the Former Yugoslav Republic of Macedonia, and Albania; on the 
east by the Aegean Sea and Turkey; and on the west and south by the 
Ionian and Mediterranean Seas. The country consists of a large mainland; 
the Peloponnesus Peninsula, connected to the mainland by the Isthmus of 
Corinth; and more than 1,400 islands, including Crete, Rhodes, Corfu, 
and the Dodecanese and Cycladic groups. Greece has more than 14,880 
kilometers (9,300 mi.) of coastline and a land boundary of 1,160 
kilometers (726 miles).

Eighty percent of Greece is mountainous or hilly. Much of the country is 
dry and rocky; only 28% of the land is arable. Greece has mild, wet 
winters and hot, dry summers. Temperatures are rarely extreme, although 
snowfalls do occur in the mountains and occasionally even in Athens in 
the winter.

Greece is located at the junction of three continents: Europe, Asia and 
Africa. Greece's foreign policy, despite its joining NATO in 1952 and 
its accession to the European Community in 1981, has remained focused on 
the Balkans and the Eastern Mediterranean region. 

Greece maintains full diplomatic, political, and economic relations with 
its south-central European neighbors. It has aimed to serve as an 
interlocutor in the Bosnia crisis. Diplomatic relations with Bulgaria 
were restored in 1965--after a 24-year break--when Bulgaria renounced 
its claim to Greek territory in Thrace and Macedonia. Following the 
breakup of the Soviet Union, Greece has had good relations with Russia 
and has opened embassies in a number of the former Soviet republics, 
which it sees as potentially important trading partners.

Issues in Greek foreign policy include occasionally strained relations 
with the Former Yugoslav Republic of Macedonia (FYROM) and Albania, the 
enduring Cyprus problem, Greek-Turkish differences over the Aegean, the 
restoration of relations with FYROM and Eastern Europe, and Greek-
American relations.

Former Yugoslav Republic of Macedonia (FYROM)

Greek refusal to recognize FYROM under the name "Republic of Macedonia" 
has been an important issue in Greek politics since 1992. Greece was 
adamantly opposed to the use of the name "Macedonia" by the government 
in Skopje, claiming that the name is intrinsically Greek and should not 
be used by a foreign country. Furthermore, Greece feels that an 
independent "Republic of Macedonia" bordering the Greek region of 
Macedonia would fuel irredentist tensions in FYROM. The dispute led to a 
Greek trade embargo against FYROM in February 1994. UN, U.S., and EU 
mediation efforts brokered an interim solution to some of these 
differences in September 1995, leading to the lifting of the Greek 
embargo. Since the signing of these interim accords, the two governments 
have concluded agreements designed to facilitate the movement of people 
and goods across their common border and improve bilateral relations. 
Talks on remaining issues are still being held under UN auspices in New 
York.

Albania

Greece restored diplomatic relations with Albania in 1971, but the Greek 
Government did not formally lift the state of war, declared during World 
War II, until 1987. After the fall of the Albanian communist regime in 
1991, relations between Athens and Tirana became increasingly strained 
because of widespread allegations of mistreatment by Albanian 
authorities of the Greek ethnic minority in southern Albania. A wave of 
Albanian illegal economic migrants to Greece exacerbated tensions. The 
crisis in Greek-Albanian relations reached its peak in the summer of 
1994, when an Albanian court sentenced five members (a sixth member was 
added later) of the ethnic Greek organization "Omonia" to prison terms 
on charges of undermining the Albanian state. Greece responded by 
freezing all EU aid to Albania and deporting tens of thousands of 
illegal Albanians. In December 1994, however, Greece began to permit 
limited EU aid to Albania while, Albania released two of the Omonia 
defendants and reduced the sentences of the remaining four. These moves 
heralded a period of gradually improving relations between the two 
countries. 

Greek-Turkish Relations

Greece and Turkey enjoyed good relations in the 1930s, but relations 
began to deteriorate in the mid 1950s, sparked by the Cyprus 
independence struggle and Turkish violence directed against the Greek 
minority in Istanbul. The July 1974 coup against Cyprus President 
Makarios--inspired by the Greek military junta in Athens--and the 
subsequent Turkish military intervention in Cyprus helped bring about 
the fall of the Greek military dictatorship. It also led to the de facto 
division of Cyprus. Since then, Greece has strongly supported Greek-
Cypriot efforts, calling for the removal of Turkish troops and the 
restoration of a unified state. The Republic of Cyprus has received 
strong support from Greece in international forums. Greece has a 
military contingent on Cyprus, and Greek officers fill some key 
positions in the Greek Cypriot National Guard, as permitted by the 
constitution of Cyprus.

Other issues dividing Greece and Turkey involve the delineation of the 
continental shelf in the Aegean Sea, territorial waters and airspace, 
and NATO command and control arrangements. Greek and Turkish officials 
held meetings in the 1970s to discuss differences on Aegean questions, 
but Greece discontinued these discussions in the fall of 1981. In 1983, 
Greece and Turkey held talks on trade and tourism, but these were 
suspended by Greece when Turkey recognized the Turkish-Cypriot 
declaration of an independent state in northern Cyprus in November 1983.

After a dangerous dispute in the Aegean in March 1987 concerning oil 
drilling rights, the Prime Ministers of Greece and Turkey exchanged 
messages exploring the possibility of resolving the dispute over the 
continental shelf. Greece wanted the dispute to be decided by the 
International Court of Justice. Turkey preferred bilateral political 
discussions. In early 1988, the Turkish and Greek Prime Ministers met at 
Davos, Switzerland, and later in Brussels. They agreed on various 
measures to reduce bilateral tensions and to encourage cooperation. New 
tensions over the Aegean surfaced in November 1994, precipitated by 
Greece's ratification of the Law of the Sea Treaty and its ensuing 
statement that it reserved the right to declare a 12-mile territorial 
sea boundary around its Aegean islands as permitted by the treaty. 
Turkey stated that it would consider any such action a cause for war. 
New technical-level bilateral discussions began in 1994 but quickly 
fizzled. 

In January 1996, Greece and Turkey came close to an armed confrontation 
over the question of who had sovereignty over an islet in the Aegean. 
Tensions remain high.

The Middle East

Greece has a special interest in the Middle East because of its 
geographic position and its economic and historic ties to the area. 
Greece cooperated with Allied forces during the Persian Gulf War of 
1990-91. In December 1994, Greece signed a defense cooperation agreement 
with Israel; in January 1995, Prime Minister Papandreou visited Syria 
and Jordan to help push forward the Middle East Peace Process and 
strengthen bilateral ties with those two states.

TRAVEL AND BUSINESS INFORMATION 

The U.S. Department of State's Consular Information Program provides 
Travel Warnings and Consular Information Sheets. Travel Warnings are 
issued when the State Department recommends that Americans avoid travel 
to a certain country. Consular Information Sheets exist for all 
countries and include information on immigration practices, currency 
regulations, health conditions, areas of instability, crime and 
security, political disturbances, and the addresses of the U.S. posts in 
the country. Public Announcements are issued as a means to disseminate 
information quickly about terrorist threats and other relatively short-
term conditions overseas which pose significant risks to the security of 
American travelers. Free copies of this information are available by 
calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-
on-demand system: 202-647-3000. Travel Warnings and Consular Information 
Sheets also are available on the Consular Affairs Internet home page: 
http://travel.state.gov and the Consular Affairs Bulletin Board (CABB). 
To access CABB, dial the modem number: 301-946-4400 (it will accommodate 
up to 33,600 bps); set terminal communications program to N-8-1 (no 
parity, 8 bits, 1 stop bit), and terminal emulation to VT100. The login 
is travel and the password is info (Note: Lower case is required). The 
CABB also carries international security information from the Overseas 
Security Advisory Council and Department's Bureau of Diplomatic 
Security. Consular Affairs Trips for Travelers publication series, which 
contain information on obtaining passports and planning a safe trip 
abroad, can be purchased from the Superintendent of Documents, U.S. 
Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954; 
telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be 
obtained from the Office of Overseas Citizens Services at (202) 647-
5225. For after-hours emergencies, Sundays and holidays, call 202-647-
4000. 

Passport Services information can be obtained by calling the 24-hour, 7-
day-a-week automated system ($0.35 per minute) or live operators 8 a.m. 
to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-
225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate 
of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648).

Travelers can check the latest health information with the U.S. Centers 
for Disease Control and Prevention in Atlanta, Georgia. A hotline at 
(404) 332-4559 gives the most recent health advisories, immunization 
recommendations or requirements, and advice on food and drinking water 
safety for regions and countries. A booklet entitled Health Information 
for International Travel (HHS publication number CDC-95-8280) is 
available from the U.S. Government Printing Office, Washington, DC 
20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and 
customs regulations, legal holidays, and other items of interest to 
travelers also may be obtained before your departure from a country's 
embassy and/or consulates in the U.S. (for this country, see "Principal 
Government Officials" listing in this publication). 

U.S. citizens who are long-term visitors or traveling in dangerous areas 
are encouraged to register at the U.S. embassy upon arrival in a country 
(see "Principal U.S. Embassy Officials" listing in this publication). 
This may help family members contact you in case of an emergency. 

Further Electronic Information: 

Department of State Foreign Affairs Network (DOSFAN). Available on the 
Internet, DOSFAN provides timely, global access to official U.S. foreign 
policy information. Updated daily, DOSFAN includes Background Notes; 
Dispatch, the official magazine of U.S. foreign policy; daily press 
briefings; directories of key officers of foreign service posts; etc. 
DOSFAN's World Wide Web site is at http://www.state.gov; this site has a 
link to the DOSFAN Gopher Research Collection, which also is accessible 
at gopher://gopher.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on a semi-annual basis 
by the U.S. Department of State, USFAC archives information on the 
Department of State Foreign Affairs Network, and includes an array of 
official foreign policy information from 1990 to the present. Contact 
the Superintendent of Documents, U.S. Government Printing Office, P.O. 
Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or 
fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of 
Commerce, the NTDB contains a wealth of trade-related information, 
including Country Commercial Guides. It is available on the Internet 
(www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-
1986 for more information. 

=======================================
ADDITIONAL RESOURCES

These publications are provided as an indication of the variety of 
material published about Greece. The Department of State does not 
endorse unofficial publications.

Blinkhorn, Martin and Veremis, Thanos. Modern Greece: Nationalism and 
Nationality. Athens: Sage-Eliamep, 1990.
Cartledge, Paul. The Greeks: A Portrait of Self and Others. Oxford 
University Press, 1993.
Clogg, Richard. A Concise History of Modern Greece. New York: Cambridge 
University Press, 1992.
Clogg, Richard. Greece in the 1980's. London: Macmillan, 1983.
Close, David H. Editor. The Greek Civil War, 1943-1950: Studies of 
Polarization. Routledge, 1993.
Constas, Dimitri and Stavrou, Theofanis, editors. Greece Prepares for 
the Twenty-First Century. Johns Hopkins University Press, 1994.
Couloumbis, Theodore and Iatrides, John. Greek-American Relations: A 
Critical Review. New York: Pella, 1980.
Freris, Andreas. The Greek Economy in the Twentieth Century. Kent: Croom 
Helm, 1988.
Gage, Nicholas. Eleni. New York: Random House, 1983.
Kaplan, Robert D. Balkan Ghosts: A Journey Through  History. Random 
House, 1994.
Katsoulis, Elias, et al., eds. Greece Towards the Year 2000. Athens: 
Papazizis, 1988.
Kazantzakis, Nikos. Zorba the Greek. New York: Simon and Schuster, 1959.
Kousoulas, Dimitrios G. Modern Greece: Profile of a Nation. New York: 
Scribner, 1974.
Modern Greece: A Short History. London: Faber, 1992. 
Papandreou, Andreas. Democracy at Gunpoint. Garden City: Doubleday, 
1970.
Pendley, John G. Greek Art and Archaeology. Abrams, 1993.
Seferis, George. Collected Poems (1924-1955). Princeton: Princeton 
University Press, 1962.
Stearns, Monteagle. Entangled Allies: U.S. Policy Toward Greece, Turkey, 
and Cyprus. Council on Foreign Relations, 1992.
Stoneman, E. Richard. Literary Companion to Travel in Greece. J. Paul 
Getty Trust Publications, 1994.
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